A proposed budget released on Wednesday by New York Gov. Kathy Hochul included an item that would allow the state to issue bonds that would be used to fund the complete renovation of Belmont Park.
The inclusion of the bond issue is a major breakthrough for the New York Racing Association, which has said that the only viable option for funding the renovation is state-backed bonds. NYRA has been lobbying for the proposal for several years.
In her briefing book describing the $227 billion budget proposal, Hochul’s staff wrote that the issuance of the bonds would “facilitate the move of Aqueduct racing to Belmont, allowing the state to repurpose the Aqueduct property.”
NYRA runs the racing operations at Aqueduct, Belmont, and Saratoga, but the state holds the deeds to the land. NYRA officials have said that Belmont is currently unsuitable as a nearly year-round racetrack, and they have floated proposals to raze the existing grandstand and build a much smaller facility with modern amenities.
“Belmont Park stands at the center of the statewide racing ecosystem, and the project to re-imagine the facility will create jobs, drive tourism to the region and secure the future of Thoroughbred racing across the state,” said David O’Rourke, the chief executive officer of NYRA, in a statement after Hochul released the proposed budget.
Aqueduct is located on a subway line close to John F. Kennedy International Airport. The track is adjacent to one of the state’s most lucrative casinos, Resorts World, which is operated by Genting. A portion of the revenues from the casino goes to racing purses, breeders’ awards, and NYRA’s operations.
NYRA has said that it will use those proceeds from the casino to pay the interest and principal on the bonds, at a cost of $28.5 million a year, according to a revenue memo accompanying the budget. The plan would require a total of $455 million in bonds.
NYRA said that the entire project to renovate the Belmont Park property would be completed in three years. During that time, racing is likely to be held at Aqueduct when Saratoga is not hosting its summer meet.
Budget proposals in New York are often subjected to intense negotiations between the governor’s office and the legislature, and the inclusion of the NYRA bond proposal is not a guarantee that the legislature will sanction the plan. Hochul, a Democrat, was elected to a four-year term last November, and both houses of the legislature in New York are controlled by Democrats.
A bill providing for the bonds gained some traction in the legislature last year, but support for the plan wilted after the government received intense criticism for passing a bill providing taxpayer funding for the construction of a new stadium for the Buffalo Bills.
The funding proposal is supported by Sen. Joseph Addabbo, the chairman of the Senate’s Racing, Wagering, and Gaming Committee, and Rep. Gary Pretlow, the chairman of the Assembly’s counterpart committee.
A lobbying group called We Are New York Horse Racing has also been pushing support for the plan over the past year. The coalition includes legislative members from Long Island and Saratoga Springs, labor unions that would benefit from the renovation project, officials of local business groups, and a broad collection of racing constituencies in the state.
“Our coalition looks forward to working with Gov. Hochul and our partners in the legislature to make sure this critical economic development initiative moves forward, and is excited to partner with communities across the state on this important project,” said Jack Sterne, a spokesman for We Are New York Horse Racing.
